Rising Confidence in UK Property 2025

The UK property market continues to demonstrate resilience, and 2025 is shaping up to be a strong year for investors. With stabilising interest rates, growing investor confidence, and steady house price growth, the investment landscape is looking increasingly favourable.

Whether you're a seasoned investor or new to the market, this is a key moment to explore UK property opportunities — particularly in high-growth regional areas.

Key Takeaways

• House prices are forecast to rise by 2.5% to 4% in 2025.
• Northern cities like Manchester, Liverpool, and Leeds are set to outperform the South.
• Lower mortgage rates and stronger economic sentiment are boosting investor confidence.
• Regeneration projects and infrastructure investments are driving regional growth.

Positive Signs for the 2025 Property Market

The UK housing market is on an upward trajectory. According to Rightmove, the average asking price increased by 1.7% in January 2025, the largest January jump since 2020. Real estate consultancies are also bullish: Knight Frank forecasts 2.5% house price growth this year, while Savills projects a more optimistic 4% rise.

These figures reflect a broader return in buyer confidence, buoyed by improving affordability, a resilient jobs market, and reduced inflationary pressure.

Regional Markets on the Rise

In 2025, the North continues to outshine the South. Savills predicts 5% growth in northern regions such as the North West, Yorkshire, and the North East, driven by affordability, regeneration, and strong rental demand.

Cities like Manchester, Liverpool, and Leeds are benefiting from major infrastructure projects (such as HS2 and city centre regeneration), making them hot spots for capital appreciation and rental yields. Conversely, London and the South East are projected to see more modest growth (around 2.5%) or even stagnation at the top end of the market due to tax changes affecting overseas buyers.

Investors Return as Rates Drop

Falling interest rates are fuelling investor optimism. The average five-year fixed-rate mortgage dropped to 5.25% in January 2025, down from 5.55% the year before. Combined with stable inflation and a strong rental market, these lower rates are creating a more accessible entry point for both UK-based and international investors.

High rental yields continue to attract attention, especially in northern cities. According to PropertyData.co.uk, average gross rental yields in Manchester and Liverpool exceed 6%, outperforming many southern cities.

How Rothmore Property Helps You Navigate the 2025 Market

At Rothmore Property, we offer over 60 developments across high-demand UK locations, with a focus on both growth potential and long-term rental yields. Whether you're looking for an entry-level buy-to-let or expanding a portfolio, our expert team is here to provide tailored advice and full-service property management. We guide you from strategy to completion, ensuring your investment aligns with your long-term goals.

Strong Signals for 2025 and Beyond

With house prices stabilising, mortgage rates improving, and regional cities outperforming national averages, 2025 presents a timely opportunity for property investors. The North of England, in particular, offers a compelling case with affordable entry points and strong growth potential.

Rothmore Property is here to help you make the most of this positive momentum. Whether you’re exploring new locations or refining your investment strategy, we’ll ensure your next move is the right one.

Ready to invest with confidence?

Contact us today to speak with our expert team and start planning your 2025 property portfolio.